# Euro falls after ECB holds fire, dollar jumps as spreads widen

> The ECB announced fresh coronavirus stimulus but held its deposit rate unchanged, which disappointed markets that had expected a cut. The euro fell to $1.1198 as investors rushed into dollars, and the dollar index rose 1.1% to 97.60 as cross-currency swap spreads widened.

- Date: 2020-03-12 · published 2020-03-12T12:00:00.000Z
- Category: macro · region Euro area · magnitude medium
- Page: https://feedsoft.ai/events/6271-euro-falls-after-ecb-holds-fire-dollar-jumps-as-spreads-widen
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md)

## Why it matters

A stronger dollar driven by a funding squeeze tends to pressure dollar-denominated commodity prices and widens the gap for non-US feed buyers facing a weaker local currency.

## Read by commodity

- DXY: bullish ▲
- EURUSD: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| EURUSD | 2020-03-12 | 1 | -1.8% | -4.5 | Same-day ECB decision to hold the deposit rate (no cut) while the dollar surged on a dash for liquidity and wider swap spreads directly explains the euro's roughly 1.8% drop against the dollar. |
| EURUSD | 2020-03-18 | 5 | -4.0% | -5.3 | On 12 March the ECB disappointed by holding its deposit rate while a dollar funding squeeze widened swap spreads, so the euro fell to $1.1198 at the start of the 5-day window. |
| EURUSD | 2020-03-17 | 1 | -1.5% | -3.2 | The ECB's 12 March package disappointed markets and widening cross-currency swap spreads sparked a dollar rush, setting up the euro's weakness, though it falls several days before the 17 March move. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2024-07-18 | [Euro falls after ECB holds rates, dollar climbs after data](https://feedsoft.ai/events/29485-euro-falls-after-ecb-holds-rates-dollar-climbs-after-data.md) | +0.8% | -0.1% |
| DXY | 2022-10-27 | [Euro falls against the dollar after ECB rate hike, U.S. data](https://feedsoft.ai/events/39360-euro-falls-against-the-dollar-after-ecb-rate-hike-u-s-data.md) | +0.7% | -2.5% |
| DXY | 2026-10-01 | [Dollar rises, euro slips after ECB rate increase](https://feedsoft.ai/events/17692-dollar-rises-euro-slips-after-ecb-rate-increase.md) | +0.2% | +0.6% |
| DXY | 2023-05-04 | [Dollar gains, euro dips after cautious ECB](https://feedsoft.ai/events/36157-dollar-gains-euro-dips-after-cautious-ecb.md) | -0.5% | +0.8% |
| DXY | 2026-09-10 | [Euro slips as dollar rises after ECB rate hike \| MarketScreener](https://feedsoft.ai/events/17698-euro-slips-as-dollar-rises-after-ecb-rate-hike-marketscreener.md) | +0.9% | +2.9% |
| EURUSD | 2024-07-18 | [Euro falls after ECB holds rates, dollar climbs after data](https://feedsoft.ai/events/29485-euro-falls-after-ecb-holds-rates-dollar-climbs-after-data.md) | -0.7% | +0.8% |
| EURUSD | 2022-10-27 | [Euro falls against the dollar after ECB rate hike, U.S. data](https://feedsoft.ai/events/39360-euro-falls-against-the-dollar-after-ecb-rate-hike-u-s-data.md) | -1.9% | +3.3% |
| EURUSD | 2026-10-01 | [Dollar rises, euro slips after ECB rate increase](https://feedsoft.ai/events/17692-dollar-rises-euro-slips-after-ecb-rate-increase.md) | -1.4% | -1.6% |

## Sources

- financialpost.com: https://financialpost.com/pmn/business-pmn/euro-falls-after-ecb-holds-fire-dollar-jumps-as-spreads-widen
- cnbc.com: https://www.cnbc.com/2020/03/12/forex-markets-ecb-coronavirus-in-focus.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.